Evaluating Cost Efficiency in SMO Earthwork Service Contracts Using CPI, BV, and Variance-Based Approach

Darmawan Pontan; Alexander Alexander; Salman Salman; Berman Berman

doi:10.34306/ijcitsm.v6i2.268

Authors

Darmawan Pontan Universitas Trisakti https://orcid.org/0000-0001-7875-6105
Alexander Alexander Universitas Trisakti https://orcid.org/0009-0009-5637-6561
Salman Salman Universitas Trisakti
Berman Berman Universitas Trisakti

DOI:

https://doi.org/10.34306/ijcitsm.v6i2.268

Keywords:

Cost Efficiency, Cost Performance Index, Budget Variance, Unit Price Contract, Variance Analysis

Abstract

This study examines the implementation of unit price contracts with hypothetical volumes in Surface Maintenance Operation (SMO) Earthwork service projects, where quantity uncertainty may significantly affect project cost performance. The objective of this study is to evaluate cost efficiency and analyze the financial impact of quantity realization under unit price contract schemes. A quantitative approach was employed using completed contract data from Package X and Package X Mitigation. Cost efficiency was assessed through Cost Performance Index (CPI), Budget Variance (BV), and variance-based analysis using Budget Plan (RAB) and Final Budget Plan (RAPP) data. The results indicate that CPI and BV effectively measure cost efficiency and identify deviations between planned and actual expenditures. The analysis further reveals that quantity realization and changes in work volumes are major factors influencing contractor profitability and project cost performance. The mitigation package demonstrated a more balanced operational distribution and improved cost control compared with the original package. The study concludes that integrating CPI, BV, and variance based analysis provides a practical framework for evaluating post execution cost efficiency in unit price contracts with hypothetical quantities. These findings support evidence-based cost management and contribute to SDG 9 and SDG 12 through improved resource efficiency and sustainable infrastructure project management.

References

C. Narawish, D. K. Sharma, S. S. Rajest, and R. Regin, “Importance of cost efficiency in critical aspect of influences the decision-making process in banks,” Turkish Journal of Physiotherapy and Rehabilitation, vol. 32, no. 3, pp. 47 184–47 212, 2021.

A. Alexander, D. Pontan, E. A. Nabila, and L. Sanbella, “Evaluating cost performance and unit rate optimization in surface maintenance operation (smo) earthwork service contracts,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 7, no. 1, pp. 51–60, 2025.

M. Marzouk, A. Mohamed, and A. Hamdy, “Exploratory structural equation modeling to analyze bridge projects cost overruns due to variation orders,” Journal of Financial Management of Property and Construction, pp. 1–26, 2026.

A. Shehadeh, O. Alshboul, O. Tatari, M. A. Alzubaidi, and A. H. E.-S. Salama, “Selection of heavy machinery for earthwork activities: A multi-objective optimization approach using a genetic algorithm,” Alexandria engineering journal, vol. 61, no. 10, pp. 7555–7569, 2022.

I. P. Gustiah, N. Lutfiani, M. R. Kusuma, E. P. Lestari, and T. Green, “Grant submission monitoring system based on orange technology using laravel 12 and vue. js,” Journal of Orange Technology, vol. 1, no. 2, pp. 75–90, 2025.

M. ˇSopi´c, M. Vukomanovi´c, and D. Car-Puˇsi´c, “Machine cost-effectiveness in earthworks: Early warning system and status of the previous work period,” Sustainability, vol. 16, no. 17, p. 7294, 2024.

A. Rozi, J. Junengsih, S. Alam, A. Pawar, W. Sumarjo, and D. Sunarsi, “Impact of hr management on ai implementation and data protection in indonesian manufacturing,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 6, no. 1, pp. 51–64, 2026.

M. Munawir, A. Suherman, and N. H. Ahmada, “Budget efficiency vs public service: A critical evaluation of presidential instruction no. 1 of 2025,” Journal of Law and Economics, vol. 4, no. 2, pp. 224–236, 2025.

P. A. Sunarya, M. F. Hilmi, N. A. Santoso, S. V. Sihotang, and R. S. Ikhsan, “Anxiety prediction model based on smartwatch activity data and self-reported affect scale in adolescents,” Journal of Orange Technology, vol. 2, no. 1, pp. 25–36, 2025.

D. Kim, “Soil sharing and equipment operations through digitalization of large-scale earthworks,” Buildings, vol. 14, no. 12, p. 3981, 2024.

D. E. E. Saputra, D. Susita, A. Eliyana, A. S. Pratama, M. H. Muzakki, and Z. Yazid, “Employees intentions to use performance management system in regional bank: Perspective from generation-x,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 3, pp. 550–561, 2024.

K. Geeta and V. Kamakshi Prasad, “Multi-objective cloud load-balancing with hybrid optimization,” International Journal of Computers and Applications, vol. 45, no. 10, pp. 611–625, 2023.

M. T. Abid, N. Aljarrah, T. Shraa, and H. M. Alghananim, “Forecasting and managing urban futures: Machine learning models and optimization of urban expansion,” Asian Journal of Civil Engineering, vol. 25, no. 6, pp. 4673–4682, 2024.

C. Lukita, G. A. Pangilinan, M. H. R. Chakim, D. B. Saputra et al., “Examining the impact of artificial intelligence and internet of things on smart tourism destinations: A comprehensive study,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 135–145, 2023.

V. Skrbinjek, “Model evalvacij digitalnih kompetenc in temeljnih vsebin raˇcunalniˇstva in informatike v izobraˇzevanju,” Revija Inovativna pedagogika, vol. 1, no. 1, pp. 60–71, 2025.

F. A. Rahardja, S.-C. Chen, and U. Rahardja, “Review of behavioral psychology in transition to solar photovoltaics for low-income individuals,” Sustainability, vol. 14, no. 3, p. 1537, 2022.

D. Permana, M. Fahrulrozi, A. Ismono, and R. Ningrum, “Implementasi graphic rating scale dalam menentukan prioritas indent motor pada dealer sepeda motor: Implementation of the graphic rating scale in determining motorcycle indent priorities at motorcycle dealers,” Technomedia Journal, vol. 9, no. 1, pp. 76–91, 2024.

Q. Aini, D. Manongga, E. Sediyono, S. Y. J. Prasetyo, U. Rahardja, and N. P. L. Santoso, “The adoption of blockchain technology the business using structural equation modelling,” IJCCS (Indonesian Journal of Computing and Cybernetics Systems), vol. 18, no. 1, pp. 13–24, 2024.

O. Jayanagara, I. Y. Purnama, M. M. Sari, S. A. Anjani, and C. Perez, “Enhancing academic wellbeing through empathic digital attendance systems using utaut approach,” Journal of Orange Technology, vol. 1, no. 2, pp. 63–74, 2025.

S. Rao, S. Patel, P. Jain, and V. Patel, “Effective scheduling and time management of dhamra railway project using primavera p6,” in ASPS conference proceedings, vol. 1, no. 4, 2022, pp. 1165–1173.

X. Sheng, R. Gupta, and O. Cepni, “Time-varying effects of extreme weather shocks on output growth of the united states,” Finance Research Letters, vol. 70, p. 106318, 2024.

K. Almassy and D. Koch, “Problem raising: The question of design procedures depending on the composition of mixtures,” Facta Universitatis, Series: Architecture and Civil Engineering, pp. 383–395, 2023.

A. Ledentsov, S. Fatmawati, and P. Seviawani, “Basic electricity and electronics subjects using canva as a learning medium,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 3, no. 2, pp. 120–129, 2023.

M. J. Niaz, S. Danish, A. Rehman, M. Yaseen, M. R. Safdar, F. Sadaf, A. Usman et al., “Breaking the cycle of” begging and dancing”: Socio-economic barriers to formal employment for the transgender community in punjab,” The Critical Review of Social Sciences Studies, vol. 4, no. 2, pp. 01–09, 2026

W. Musial, P. Spitsen, P. Duffy, P. Beiter, M. Shields, D. Mulas Hernando, R. Hammond, M. Marquis, J. King, and S. Sathish, “Offshore wind market report: 2023 edition,” National Renewable Energy Laboratory (NREL), Golden, CO (United States), Tech. Rep., 2023.

A. Felix and G. D. Rembulan, “Analysis of key factors for improved customer experience, engagement, and loyalty in the e-commerce industry in indonesia,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 196–208, 2023, https://doi.org/10.34306/att.v5i2sp.350.

W. Proboretno, B. Witjaksana, and H. T. Tjendani, “Time performance analysis on afv earthwork in kedungpeluk sidoarjo using the earned value method,” Journal Of Humanities, Social Sciences And Business, vol. 3, no. 2, pp. 465–475, 2024.

N. D. Noviati, S. D. Maulina, and S. Smith, “Smart grids: Integrating ai for efficient renewable energy utilization,” International Transactions on Artificial Intelligence, vol. 3, no. 1, pp. 1–10, 2024.

R. D. Hadiwidjaja, A. I. Suroso, H. Siregar, and I. Sailah, “Performance paradigm: Entrepreneurial good university governance mediating leadership style in state universities,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 3, pp. 492–508, 2024, https://doi.org/10.34306/att.v6i3.453.

W. Ahmed, C. Ye, G. Lu, S. T. Ng, G. Liu, and Y. Wang, “Low-carbon concrete comprising high-volume pozzolan and recycled aggregate: evaluating mechanical performance, microstructure, environmental impact, and cost efficiency,” Journal of Cleaner Production, vol. 518, p. 145796, 2025.

N. Azizah, P. A. Sunarya, U. Rahardja, A. B. Mutiara, P. Prihandoko, and C. Pasha, “Improving smearnegative tuberculosis detection using data augmentation and faster r-cnn,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 6, no. 1, pp. 65–77, 2026.

A. S. Bist, B. Rawat, A. G. Prawiyogi, N. Septiani, M. Fakhrezzy, D. B. Saputra et al., “Ai-enabled blockchain for supply chain in agriculture,” in 2022 IEEE Creative Communication and Innovative Technology (ICCIT). IEEE, 2022, pp. 1–5.

M. A. Azad, “Evaluating the role of lean manufacturing in reducing production costs and enhancing efficiency in textile mills,” Authorea Preprints, 2025.

A. Faturahman, H. Hamdan, M. F. Fazri, U. Rahardja, and A. Vallery, “Inclusive ai interaction framework for enhancing happiness and care within orange technology applications,” Journal of Orange Technology, vol. 2, no. 1, pp. 1–12, 2025.

Y. Wu, “Design and analysis of energy efficient urban buildings based on bim model,” Journal of Computational Methods in Sciences and Engineering, vol. 24, no. 6, pp. 3785–3798, 2024.

U. Rahardja, S.-C. Chen, Y.-C. Lin, T.-C. Tsai, Q. Aini, A. Khan, F. P. Oganda, E. R. Dewi, Y.-C. Cho, and C.-H. Hsu, “Evaluating the mediating mechanism of perceived trust and risk toward cryptocurrency: An empirical research,” Sage Open, vol. 13, no. 4, p. 21582440231217854, 2023.

N. Khairunnisa, F. Christiani, and A. G. Prawiyogi, “Supply chain transparency: Exploring blockchain solutions for enhanced traceability and efficiency,” Blockchain Frontier Technology, vol. 4, no. 1, pp. 15–22, 2024.

L. Sanbella, I. Van Versie, and S. Audiah, “Online marketing strategy optimization to increase sales and e-commerce development: An integrated approach in the digital age,” Startupreneur Business Digital (SABDA Journal), vol. 3, no. 1, pp. 54–66, 2024.

R. A. Febriyanti, T. Nurtino, M. L. Huzaifah, D. A. R. Kusumawardhani et al., “Information technology development’s impact on library services,” International Transactions on Education Technology (ITEE), vol. 2, no. 1, pp. 24–30, 2023.

M. Abdullah-Al-Kafi, I. J. Tasnova, M. Wadud Islam, and S. K. Banshal, “Performances of different approaches for fake news classification: an analytical study,” in International Conference on Advanced Network Technologies and Intelligent Computing. Springer, 2021, pp. 700–714.

R. Lesmana, I. Wijaya, E. A. Nabila, H. Agustian, S. Audiah, and A. Faturahman, “Enhancing market trend analysis through ai forecasting models,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 4, no. 2, pp. 105–113, 2024.

V. Kamchoom, D. B. Van, S. Hosseini, M. Alimoradijazi, H. Amini-Khoshalan, A. Mirzaghorbanali, B. J. Shokri, and K. P. Arunachalam, “Enhanced forecasting of friction and cohesion of augmented unsaturated soil with nanostructured quarry fines (nqf) addition,” Scientific Reports, 2026